BU385 Chapter 5: Chapter 5- Strategic Capacity Planning
Document Summary
Capacity: upper limit on workload that an operating unit can handle (e. g. plant, store) Usually measured as max. production rate or throughput (e. g. max. # of customers service in particular research per day) Output hard to measure = major input used (e. g. size or # of seats in restaurant) Long term: 1-5 years in future; determining plant size and major machines/equip. Medium term: next 12 months; determining nature and level of workforce determines aggregate operations plan. Short term: next few days/weeks; determining nature and level of staffing and work shifts determines production schedule of products or capacity of service. Outsourcing increasingly used by organizations to reduce costs, gain flexibility (for (cid:448)a(cid:396)ia(cid:271)le de(cid:373)a(cid:374)d(cid:895), a(cid:374)d take ad(cid:448)a(cid:374)tage of supplie(cid:396)s(cid:859) e(cid:454)pe(cid:396)tise (cid:894)(cid:395)ualit(cid:455)(cid:895) Can outsource parts of a g/s or segment of production/service processes. Strategic capacity planning: systematic discrimination of facility and major machine/equipment requirements to meet long-term demand for g/s.
